Despite escalation of the EU subsidy row, American contingent decides against emulating 2003 Paris boycott
Two years after the USA cut back its presence at Paris in retaliation for French opposition to the war in Iraq, and despite the towering trade dispute with Europe, US participation in the show is back to normal, says the Aerospace Industries Association (AIA).
Although the US government and European Commission launched rival World Trade Organisation (WTO) cases over Airbus and Boeing subsidies on the eve of Paris, “it is a normal show for US participation”, says John Douglass, AIA president and chief executive. “We are trying to avoid an over-emotional reaction to the WTO action.”
US industry “fully supports” the US government’s decision to launch a WTO case, says Douglass, adding: “A long dispute is in no-one’s interest and we hope they will continue a parallel negotiating track, but the bottom line is launch aid must end.”
Douglass acknowledges he faces difficult questions at Paris from his opposite numbers in Europe about moves in Congress to restrict European Union access to US Department of Defense contracts if there is an unresolved WTO dispute, or if European companies sell military equipment to China.
Although he initially supported the anti-subsidies amendment introduced in the House of Representatives, Douglass says the AIA now backs the Bush administration’s opposition to the legislation “as written”. Although the amendment is intended to prevent Airbus from competing with Boeing for US Air Force tanker orders, until the subsidies dispute is resolved, there is potential for unintended consequences, he says.
US industry opposes the China amendment, which would impose a five-year ban on DoD contracts with foreign companies selling items on the US Munitions List to China. “It is too difficult to administer and enforce,” says Douglass. “We do oppose the lifting of the European embargo on China, but we do not feel the amendment is needed to prevail.”
AIA also opposes another House amendment that would eliminate the defence secretary’s discretion to waive the Buy American Act’s requirement that equipment purchased have at least 50% US content. “We want the DoD to have that discretion,” he says.
Source: Flight International
